If I have a low credit score 621, $10,000 down payment, and earn $90,000 can I buy a $300,000 in Media PA (suburbs to Phila)?

Asked by shirleyskidsspa, Media, PA Sun Jan 13, 2013

Hello, My husband and I are interested in buying the home we are currently renting in Media PA. My husband still holds the FHA mortgage on our last home (currently up for sale 12 mos) and he does not make enough income to qualify for another mortgage. But I thought maybe I could try for a mortgage for this house in Media PA. I have contacted two reputable mortgage brokers about this and received no response from them after they pulled my credit report. There are no bad debts anymore but my credit score is 621. I earn a salary of $90,000 (2yrs) and only currently have about $10,000 saved for a down payment. Please tell me what I must do to buy this house in Media.

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John B. Gray, CRS, Broker’s answer
John B. Gray,…, Agent, Media, PA
Sun Jan 13, 2013
Shirley, the ability to purchase is not solely based upon income and credit score. They are only 2 of multiple factors considered. Other factors include long term obligations such as Student loans, car payments, child support, bankruptcy, credit record over the last 12 months. Plus any short term obligations, credit cards, taxes due and other things. Typically, if your credit score were higher the lender would consider 33% housing ratio nd 43% all debt ratio. Due to a number of failed mortgages with more liberal credit considerations, lender may be adjusting the monthly Housing debt to 25% of gross monthly income. But other debt still factors into the equation . You need to spea with a lender who will lookat your total picture and pre-qualify you. FHA will probably be youronly option and yo will need a miimum of 3.5% of the purchase price into the. transaction. For $300,000 price that amount is $10,500 so the amoun s close, but you would need to hve ALL of your closing costs paid by the seller. FHA is also considerin reducing the amount of Seller assist particularly where the creit score is arod 620.
0 votes
Thank you so much! It gives me great insight into how lenders determine eligibility.
Flag Mon Jan 14, 2013
Jessica Bate…, Agent, Beverly Hills, CA
Wed Jul 31, 2013
I work with a lot of people who have less than perfect credit. I tell all my clients that need a pre approval to visit The Lenders Network, I have seen loan approvals from them even with scores under a 600. So if anyone can get you a loan they can, their service is free.
2 votes
Paul Davis, Mortgage Broker Or Lender, Philadelphia, PA
Wed Aug 14, 2013
Hi Shirley, Did you ever buy a place? Seven months have gone by now since you first posted? Bring us up to date. Did your husbands home with the FHA loan sell? Did your credit scores increase? How much do you now have for a downpayment? If you need assistance, I am right here in Swarthmore, PA. I can do FHA loans down to 580 credit if you are challenged. 3.5% down. Call me if you'd like assistance. Sincerely,
Paul Davis
Mortgage Loan Originator
NMLS: 108444
700 East Gate Drive, Suite 400
Mt Laurel, NJ 08054
Cell: 610.724.4020
Fx: 866.810.9482
Voted Best Place to Work in Philly area 2013!
0 votes
, ,
Sun Jan 13, 2013
Hello Shirley,

I can help with credit scores of 621 as I have FHA down to 560. I am currently out of the country but will be travelling back to the US tomorrow and available to speak with you tomorrow evening. Give me a call.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes
R. Eric Axel…, Agent, Cherry Hill, NJ
Sun Jan 13, 2013
Hi Shirley, if you reach out to me tomorrow, I will put you in touch with MY mortgage guy. He WILL get back to you and I will keep tabs to see what your next step needs to be. Send me an email when you get a chance.

Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
856.979.5967 m
Web Reference:  http://kurfiss.com
0 votes
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